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3 Stocks Nancy Pelosi Has Been Buying 2024-05-10 12:35:00+00:00 - Key Points California Representative Nancy Pelosi, after her Nvidia windfall, has chosen a new list of stocks to be bullish on. These stocks are part of a significant economic tailwind this cycle, and they could potentially prove winners for her and those who watch. Analysts see a double-digit upside ahead for these stocks, with EPS growth to back them. 5 stocks we like better than Netflix When U.S. government officials decide to take on a view for a particular stock, Main Street investors could benefit by trying to figure out where and why these people decide to invest. Today, there is a clear technology sector preference on the part of California representative Nancy Pelosi. Pelosi is now part of the ‘insider trading’ scandal after making a hefty profit on her Nvidia Co. NASDAQ: NVDA trades earlier this year. According to records, the government official made around $500,000 on her Nvidia trade, doubling her annual salary. While some may critique her potential access to privileged information, most miss out on the big picture. Get Netflix alerts: Sign Up Her other – most recent – interests in stocks like Alphabet Inc. NASDAQ: GOOGL, the Walt Disney Co. NYSE: DIS, and even Palo Alto Networks Inc. NASDAQ: PANW all have a similar trend behind them. Knowing where today’s value remains in the global economy, Pelosi has chosen these stocks. The Beat of The Economic Drum Will Pelosi be right again in her latest bets? Only time will tell; one thing investors can probably guess, though, is that she’s not far off the right track. As the U.S. economy faces a steep divide this year, with the technology and manufacturing sectors diverging from their typical relationship, her stock picks could see a fundamental backing this cycle. After contracting for more than 15 consecutive months, the ISM manufacturing PMI index left the spotlight for the ISM services PMI index instead. Services have expanded steadily since 2020, with only one contracting month in April 2024. Because artificial intelligence, and the chips and semiconductors behind it, will be a focal point for governments and consumers this year, the Federal Reserve (the Fed) may help the cycle along. The Fed could spark a new bull cycle in services stocks like Pelosi’s picks by proposing interest rate cuts later this year. One thing is certain, however, that her reasoning goes beyond this simple economic fact. Google’s A.I. Race, At Great Prices Alphabet Today GOOGL Alphabet $168.65 -1.31 (-0.77%) 52-Week Range $114.41 ▼ $174.71 P/E Ratio 25.87 Price Target $190.60 Add to Watchlist Sure, shares of Alphabet have risen to all-time highs recently, but the stock’s forward P/E suggests that new ceilings could be coming in soon. Trading at a forward P/E valuation of 21.8x places Google at a 27% discount to its recent 30.0x forward P/E multiple in 2021. Analysts think the stock could see earnings per share (EPS) growth of 14% this year, pushing the envelope to expand this forward P/E to where it once was. More than that, according to price targets, analysts at J.P. Morgan Chase & Co. think Google stock could rally up to $200 a share. The stock must jump by 18.3% from where it trades today to prove these projections right. After creating the Gemini ecosystem, it is easy for investors to see how Google’s access to almost all of the world’s consumer data can be used through its artificial intelligence arm. Pelosi is onto something here but added one last piece to this A.I. puzzle. Palo Alto Networks: The New Economy’s Police Force Palo Alto Networks Today PANW Palo Alto Networks $297.47 +1.80 (+0.61%) 52-Week Range $186.75 ▼ $380.84 P/E Ratio 46.48 Price Target $314.82 Add to Watchlist between $500,000 and $1 million worth of Alphabet stock, Pelosi added a range of $100,000 to $250,000 to her Palo Alto Networks shopping list. Knowing that, as the global economy becomes more digitized by the day, cybersecurity stocks will play a more critical role in keeping business – and personal consumer – data secured, Pelosi saw just the right fit in Palo Alto. Palo Alto stock became a potential buy target after retracing to 80% of its 52-week high. Understanding how vital cybersecurity will become shortly, analysts at KeyCorp boosted Palo Alto’s price targets to $355 a share, or 19.4% above today’s trading price. Expecting 17% EPS growth this year and backed by a famous congresswoman investor, Palo Alto’s bears started to retreat in the past month. The stock’s short interest declined by 6.6% during April, 8.0% during March, and 4.8% during February. Disney Stock is Arguably the Easiest Pick Walt Disney Today DIS Walt Disney $105.79 -0.01 (-0.01%) 52-Week Range $78.73 ▼ $123.74 Dividend Yield 0.28% P/E Ratio 114.99 Price Target $126.46 Add to Watchlist Maybe not the easiest trade to copy, but potentially the easiest pick. As Disney's financials show net income margins contracting to near all-time lows, investors can bet on the business' margins returning to normal once their heavy investments into streaming start to pay off. With rising market share over competitors like Netflix Inc. NASDAQ: NFLX and analysts expecting 18.5% EPS growth from this $194 billion behemoth, it’s easier to see where Pelosi spotted a double-digit upside. Analysts at J.P. Morgan Chase & Co. see a price target of up to $140 a share for Disney stock, calling for a 32.4% upside from today’s prices. Having another $500,000 to $1 million position in the stock gives investors the confidence to consider Disney. One thing to remember is that the stock has yet to reinstate its former dividend yield, which stands at only 0.8% today. As the company’s free cash flow (operating cash flow minus capital expenditures) recovers, bigger dividend payouts may follow, helping the stock return to its former $203 a share high of 2021. Before you consider Netflix, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Netflix wasn't on the list. While Netflix currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Will the Biotech Sector Shift From Lagger to Leader? 2024-05-10 11:24:00+00:00 - Key Points The biotech sector has experienced a significant rally after bouncing off uptrend support and is now consolidating near major SMAs. Rising investor optimism and speculation in the short term might drive the rally, with the potential for the sector to shift from lagger to leader. Three industry-leading biotech stocks showing notable strength: Regeneron Pharmaceuticals (REGN), Moderna (MRNA), and Vertex Pharmaceuticals (VRTX). 5 stocks we like better than Moderna The biotech sector and its popular ETF, the iShares Biotechnology ETF NASDAQ: IBB, have lagged the overall market during the year, with its shares slightly red. However, in recent weeks, the sector has enjoyed a significant rally after bouncing off its uptrend support and now consolidating near several major Simple Moving Averages (SMA). The recent rally in the biotech sector comes at a time of rising investor optimism and speculation in the short term. The overall market and critical sectors, like technology and finance, trade in the upper portion of their 52-week range after experiencing a significant selloff just weeks ago. Get Moderna alerts: Sign Up So, if the newfound support can sustain itself and the rally in the overall market lasts, might the biotech sector shift from lagger to leader for the remainder of the year, or at the least in the short term? If that is to happen, an investor armed with a bullish biotech bias might benefit from gaining exposure to some of the ETF’s top holdings with notable recent and higher timeframe strength. So, let’s take a closer look at the sector and three industry-leading biotech stocks displaying notable strength in the sector. In Focus: The Biotech Sector The iShares Nasdaq Biotechnology ETF is an exchange-traded fund that aims to replicate the price and yield outcomes of the NASDAQ Biotechnology Index. This index includes biotechnology and pharmaceutical companies listed on NASDAQ that meet specific industry and eligibility criteria set by NASDAQ. While the biotech sector ETF is negative by nearly 2% on the year, it has rebounded impressively in recent weeks. It is now consolidating in a tight range between converging moving averages. In the near term, if the ETF can break above its one-week range, with $134 acting as resistance, a push toward resistance near $138 might be the subsequent consolidation and target zone. If a short-term breakout and further price stabilization are to occur, then biotech stocks that have outperformed on the year might continue to do so. Let’s look at three stocks that have displayed relative strength in the sector in the year. 3 Biotech Stocks Leading the Way Regeneron Pharmaceuticals, Inc. The IBB’s second-largest holding is Regeneron NASDAQ: REGN, with an impressive weighting of 8.22%. On the year, the $105 billion pharmaceutical giant has led the sector notably with its almost 10% gain. And with REGN just 3.4% away from its 52-week high, continued strength in the sector might nudge the stock to new heights. Conversely, a move high in REGN could result in upward momentum for the sector. Analysts favor REGN, with a moderate buy rating based on twenty analyst ratings and a price target predicting almost 2% upside. Regeneron Pharmaceuticals, Inc. (REGN) Price Chart for Sunday, May, 12, 2024 Moderna, Inc. Shares of Moderna NASDAQ: MRNA have significantly outperformed the sector and market year-to-date, up over 22%. From a technical analysis perspective, the stock doesn’t appear to be slowing down. MRNA is in a firm uptrend and trying to break out of a short-term consolidation with clear momentum to the upside. Although the sentiment is leaning toward the bears, with a considerable short interest and recent insider selling, should the overall sector continue its move higher, MRNA could continue to outperform, given its recent momentum. Moderna, Inc. (MRNA) Price Chart for Sunday, May, 12, 2024 Vertex Pharmaceuticals, Inc. Vertex Pharmaceuticals NASDAQ: VRTX is the third-largest holding of the sector ETF, with an 8.06% weighting, making it an influential sector stock. VRTX has slightly outperformed the sector with its almost 3% gain this year. The stock has held an impressive uptrend for several consecutive years and is now just 7% away from its 52-week high. Having recently broken its short-term bullish consolidation, a move toward the high $430s shouldn’t be ruled out. Vertex Pharmaceuticals Incorporated (VRTX) Price Chart for Sunday, May, 12, 2024 Before you consider Moderna, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Moderna wasn't on the list. While Moderna currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
These 2 ‘Strong Buy’ Penny Stocks Could Surge Over 400%, Says Oppenheimer 2024-05-10 05:20:00+00:00 - Risk and reward are the yin and yang of stock trading, the two essential yet opposing forces in every market success. And there are no stocks that better embody both sides – the risk factors and the reward potentials—than penny stocks. Traditionally, these are shares sold for just pennies each; nowadays, they’re the stocks priced under $5 per share. At that low entry cost, even a small gain in absolute value will quickly turn into a high-percentage return—and gains of 400% or higher are not unheard of. Of course, the risk is real, too; not every penny stock is going to show these sorts of gains. Some of them are cheap for a reason, and not every reason is a good one. So, how are investors supposed to lock in on compelling plays? That’s where the experts come in, namely the analysts at Oppenheimer. These pros bring experience and in-depth knowledge to the table. Looking at two penny stocks with the Oppenheimer stamp of approval, the firm’s analysts believe both could rally over 400% in the next year. Running the tickers through TipRanks’ database, both have been cheered by the rest of the Street as well, as they boast a ‘Strong Buy’ analyst consensus. Protara Therapeutics (TARA) We’ll start with Protara Therapeutics, a clinical-stage biopharmaceutical company focusing on the development of transformative therapies for the treatment of cancer, as well as various rare diseases. Protara currently has a pipeline built around two investigational compounds and is shifting from early clinical work to a more advanced set of clinical trials. The leading candidate, featured in multiple clinical trial research tracks, is TARA-002. This is a new cell therapy, derived from OK-432, a broad immunopotentiator; OK-432 already has approval in both Japan and Taiwan for treatment use in a range of oncologic indications, and in LMs, or lymphatic malformations. Protara’s development of the drug is being tested in the treatment of non-muscle invasive bladder cancer (NMIBC) and in LMs for patients in the US. Protara recently reported that its research programs revolving around TARA-002 in the treatment of NMIBC showed positive data from the evaluable CIS patients in the ongoing clinical program. Six-month data from another trial, the Phase 2 ADVANCED-2 study, is expected for release during 2H24. The company also has an ongoing study of TARA-002 in the treatment of LMs, with patient enrollment and dosing continuing to progress. This study, STARBORN-2, is a Phase 2 study of pediatric LMs patients, with a goal of 30 enrolled patients to receive four doses of TARA-002 set six weeks apart. Story continues Finally, in April of this year, the company announced that it was in alignment with the FDA on the ‘registrational path forward’ for the IV Choline Chloride research track. This compound will be studied in patients dependent on parenteral nutrition (PN), who are currently or may become unable to independently synthesize choline from other nutrition sources. All of this adds up to a diverse research program showing substantial promise. That, and the projected dollar-size of the therapeutic market, has sparked the interest of Oppenheimer analyst Leland Gershell. “TARA reported impressive three-month complete response data from its ongoing studies of TARA-002… The clinical results further support 002’s potential to become an important product in the multi-$B US therapeutic market implied by this disease population and increase our enthusiasm ahead of initial six-month Phase 2 data, to come in 2H… With other players in high-risk NMIBC development garnering considerably higher market valuations (EV for Phase 3-stage CGON and Phase 2-stage ENGN are respectively ~$1.8B and ~$400M vs. TARA’s ~$10M)… we see [TARA] shares as compelling at current levels… We believe shares hold significant upside potential as pipeline progress is registered,” Gershell opined. Gershell goes on to rate TARA stock as Outperform (i.e., Buy) and sets a price target of $30 on the shares, suggesting an impressive 934% upside over a one-year horizon. (To watch Gershell’s track record, click here) No one is arguing with that take on Wall Street. The stock’s Strong Buy consensus rating is based on Buys only – 4, in total. The stock is selling for $2.90, and its average price target, of $29.25, implies a one-year gain of ~909%. (See TARA stock forecast) Opthea Ltd. (OPT) The second penny stock we’ll look at here is Opthea. This Australian medical research company is focused on the treatment of various eye diseases, and has worked on diabetic macular edema, corneal neovascularization and transplantation, and dry eye disease. The company’s current work is targeting wet AMD, or wet age-related macular degeneration. This is a less common development of the dry AMD, and can occur at any stage of the more common condition’s development. Wet AMD typically causes faster vision loss than the dry variant, and occurs when abnormal blood vessel growth at the back of the eye damages the macula. Following that track, Opthea has developed OPT-302, a novel therapeutic agent now dubbed sozinibercept. This agent acts as a VEGF-C/D ‘trap’ and is designed to be used in combination therapy with existing anti-VEGF-A agents, which constitute the current standard of care. Sozinibercept has shown promise in earlier studies and offers an opportunity to meet the significant unmet medical needs of patients with wet AMD—an important development, given that most patients exhibit a sub-optimal response to current treatments. Additionally, this drug candidate has demonstrated some promise in treating diabetic macular edema, or DME. The most advanced clinical trial in the company’s pipeline focuses on the treatment of wet AMD. Opthea has two Phase 3 trials in progress, ShORe, which is testing the drug in combination with ranibizumab, and COAST, which is testing OPT-302 alongside aflibercept. The company announced in February that it had completed enrollment in the COAST trial, and that enrollment in the ShORe trial was expected to reach completion during calendar 2Q24. Top-line results from both trials are anticipated to be available in mid-2025. 5-star analyst Hartaj Singh, one of Oppenheimer’s biotech experts, has looked into the potential of Opthea’s sozinibercept and is impressed. He notes the early successes in safety profiling, and says of the company and its drug candidate, “We believe that OPT has many of the qualities we are desirous of in a small-cap biotech company: an execution-focused management team; validated science and technology; and compelling early/mid-stage clinical data… Sozinibercept has the potential to provide vision benefit on top of any anti-VEGFA agent with a well tolerated safety profile based on compelling Phase 2B results… Other emerging approaches and modalities in wAMD focus on better durability, with sozinibercept being the only agent aiming to provide a vision benefit…” In-line with this view, Singh gives OPT shares an Outperform (i.e. Buy) rating while setting an $18 price target that indicates his confidence in a robust 447% one-year upside potential. (To watch Singh’s track record, click here) Overall, Opthea has 3 positive analyst reviews on file, giving the shares a Strong Buy consensus rating. The stock is selling for $3.30 and has a $16 average price target, suggesting a ~385% gain for the year ahead. (See OPT stock forecast) To find good ideas for penny stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
We're in Our Early 60s with $1.4 Million. Can We Afford to Withdraw $90k Per Year in Retirement? 2024-05-10 04:00:00+00:00 - There are going to be many factors that help you determine if you’re ready to retire to $90k per year for as long as you’ll need it. Withdrawing too much too soon heightens the danger of depletion, so determining a safe and sustainable withdrawal rate in retirement is crucial to ensure savings last your lifetime. But portfolio allocation and retirement timing can also have a large impact on the outcome. Also vital: Accounting for inflation and healthcare costs, avoiding overspending from lifestyle inflation and managing required minimum distributions. A financial advisor can analyze your full financial picture to develop a personalized withdrawal and investing approach that balances income with longevity. Safe Retirement Withdrawal Rates Setting an appropriate withdrawal rate is an essential part of planning a secure retirement. The widely followed 4% rule suggests retirees can safely take out 4% of a conservatively allocated portfolio the first year, adjusting upward for inflation annually, with minimal risk of depletion over a 30-year timeline. Withdrawing substantially more than 4% increases risk. This is especially true early in retirement due to sequence of returns risk, which can happen when poor market conditions develop just as retirees begin distributions. This phenomenon, which is not uncommon, forces you to sell more shares in order to maintain income levels. This can drastically accelerate shrinkage of your principal and similarly drastically reduce the time your savings will last. Getting to $90k in Annual Withdrawals A couple in their early 60s considering withdrawing $90,000 annually from retirement savings of $1.4 million is, according to conventional wisdom, flirting with excessive risk. This annual withdrawal equates to a 6.4% initial withdrawal rate, substantially above the 4% guideline. A 2023 Morningstar analysis of withdrawal rates found that a similar withdrawal rate of 6.2% had only a 50% chance of allowing even an aggressively invested all-stock portfolio to last for 30 years. The same analysis found that a 4% withdrawal rate and a more conservative asset allocation of 40% stocks boosted the 30-year sustainability odds to 90%. When you use lower initial withdrawal rates in the beginning, you help your savings last longer by using the power of compounding. Once the impact of taxes and any market underperformance gets factored in, even withdrawal rates just slightly above 4% can present sustainability issues over decades. Speak to a financial advisor about approaches asset allocation in your retirement accounts. Story continues Safe Withdrawal Strategies There is more to funding a secure retirement than following a one-size-fits-all withdrawal rate benchmark. Customizing a retirement withdrawal strategy requires weighing many variables from tax efficiency to healthcare costs. General principles to follow for conservative withdrawal rates include the following: Throughout, you will want to avoid overspending due to lifestyle inflation. If you keep your budget flexible, you can reduce withdrawals as markets and prices shift. Consider matching with a financial advisor for free to discuss your financial situation. Bottom Line Withdrawing $90,000 from a $1.4 million could work, but it's too risky for many retirement savers and planners. A more conservative withdrawal rate is likely preferable. Building income diversity through delayed Social Security and reduced spending also improves odds for success. With budget flexibility and a balanced investing approach, your retirement savings can maintain income for your lifetime. Tips If you're considering withdrawing more than the commonly accepted safe standard, connect with a financial advisor to develop a personalized plan with guidance on an appropriate, sustainable withdrawal strategy. SmartAsset's free tool matches you with up to three financial advisors in your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you're ready to find an advisor who can help you achieve your financial goals, get started now. When you have questions about how much to save for retirement, SmartAsset's retirement calculator has answers. Photo credit: ©iStock.com/Tinpixels The post We’re in Our Early 60s with $1.4 Million in Investments. Can We Afford to Withdraw $90k Per Year in Retirement? appeared first on SmartReads by SmartAsset.
Bud Light sales still falling as Modelo, Coors fight to keep their gains 2024-05-10 01:30:00+00:00 - The dust is settling, and results from the beer giants are coming in. On Thursday, Bud Light parent company Anheuser-Busch InBev (BUD) posted better-than-expected Q1 results, a year after an advertising campaign kicked off a boycott starting April 2023. Yet, Constellation Brands (STZ) and Molson Coors (TAP) have been fighting to hold on to their gains from Bud's losses while looking for more room to grow. Revenue for Anheuser-Busch jumped 2.6% to $14.55 billion from higher prices, but volume sold dropped 0.6%, though it was less than Wall Street anticipated. The largest decline came from North America, where volume dropped 9.9%, largely due to sales of Bud Light. Sales to retailers and wholesalers were down 13.7% and 10.7%, respectively, in the US. "We've lost a whole generation of hardcore Bud Light shoppers," Bump Williams of Bump Williams Consulting told Yahoo Finance. "It's going to take us at least 10 years to try and recapture what we lost in one year." Williams said AB InBev will have to "buy" shoppers. As Gen Zs grow up and turn 21, they'll turn to brands that made an impression on them in their younger years. "They're not going to remember any of that stuff [regarding the boycott]. When they come into the marketplace, they're going to say, 'Oh, boy ... I know that I liked their advertising ... I'm going to go grab one," Williams added. Since the plunge in Bud Light's sales first hit in Q2 2023, its next quarterly results will be the true test of the company. "We think a lot of consumers are never going back ... but some are coming back," CFRA analyst Garrett Nelson told Yahoo Finance. "The longer-term impact, I think [we won't know] until we see their second quarter results," Nelson said. Over the last four-week period, Bud Light sales are still down 27.1% from a year ago, whereas Miller Lite is up 7.8% and Coors Light grew 15.3%, according to data from Bump Williams Consulting. Nelson called Molson Coors the "primary beneficiary of the fallout." In Molson Coors's Q1 results, CEO Gavin Hattersley said grocery shelf space is expected to increase 13% for both Miller Lite and Coors Light, and roughly 20% for Coors Banquet. Hattersley believes that will lead to higher sales, especially ahead of the critical summer season. "I don't believe any of us have seen such a dramatic shift in shelf space before ... more space equals more volume," he said. Williams isn't convinced that Molson Coors capitalized on the fallout as much as it could have. Story continues "Miller Coors just squandered the biggest opportunity they've ever had in their life. They didn't win anything. They simply got the leftovers from the Bud Light debacle," Williams said. "They didn't do anything to earn that; they just simply fulfilled orders." Shelves in a Publix grocery store supermarket in Miami Beach, Fla., displaying cases of Bud Light, Coors, and Budweiser beer. (Jeffrey Greenberg/Universal Images Group via Getty Images) (Jeff Greenberg via Getty Images) Yet, Constellation Brands is the "massive winner," per Williams. "Everything they have in the marketplace is growing — everything," he commented. Last June, Modelo overtook Bud Light as the No. 1 beer in the US. It gained market share from Bud Light's boycott but also benefitted from the growing popularity of imported beers. "Constellation Brands being the big play on imports, with Modelo, Corona, Pacifico. Imports have taken market share from domestic brands for a long time ... the Bud Light boycott helped accelerate that," said Nelson. Its CEO Bill Newlands seemed confident that the company could keep its momentum, even if Bud Light sales were to increase in volume. "Fortunately, we have a lot of things going in our favor ... we have a lot of avenues to continue to grow our business, and now we're introducing a number of things from our innovation," he told Yahoo Finance. Constellation's beer volumes jumped 8.9% year over year in the latest quarter while sales jumped 11%, both beating Wall Street estimates. — Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com. Click here for all of the latest retail stock news and events to better inform your investing strategy
Forget About ‘Timing the Market': Schwab Research Reveals the Optimal Way to Invest 2024-05-10 01:00:00+00:00 - An investor who tries to time the market stresses as he decides when to set a stock. Can investors realistically time the market to maximize returns, especially over the long term? According to a recent study from Charles Schwab, perfect market timing is practically impossible. The firm’s research showed that most investors are better off investing as soon as possible using a buy-and-hold strategy rather than trying to predict short-term peaks and valleys. Do you have questions about managing your investment portfolio? Speak with a financial advisor today. Breaking Down Schwab’s Study: Market Timing vs. Other Strategies To produce their new study, researchers at the Schwab Center for Financial Research analyzed the hypothetical 20-year returns of five investing strategies using historical S&P 500 data. Each hypothetical investor received $2,000 every year, which they could invest however they like. The investors took the following approaches: Perfect market timing: One investor invested $2,000 each year at the S&P 500's lowest trading point. Immediate investing: One investor put $2,000 into the S&P 500 on the first trading day of each year. Dollar-cost averaging: Another investor split the $2,000 into 12 equal allotments and invested one portion on the first of every month. Poorly timed investing: One investor invested the entire $2,000 at the S&P 500's highest point of the year every year. Treasuries: The final investor avoided stocks altogether and instead put their $2,000 into U.S. Treasury securities each year as a cash proxy and left it there. Not surprisingly, the study found that perfect timing delivered the best returns. However, investing immediately was a close second, trailing the results generated from perfect timing by only about 8% over 20 years. Put another way, not trying to time the market at all earned 92% as much as timing the market perfectly. In dollar terms, the difference was $10,537, with perfect timing returning $138,044 and no timing producing $127,506. “The best course of action for most of us is to create an appropriate plan and take action as soon as possible. It’s nearly impossible to accurately identify market bottoms on a regular basis,” Schwab wrote in its study. “So, realistically, the best action that a long-term investor can take, based on our study, is to determine how much exposure to the stock market is appropriate for their goals and risk tolerance and then consider investing as soon as possible, regardless of the current level of the stock market.” Monthly dollar-cost averaging also fared well. In contrast, the investor who timed their investments poorly each year beat the one who chose Treasuries over stocks, but still lagged significantly behind both the immediate investor and dollar-cost average investor. Buying only Treasuries proved the worst-performing strategy of all, and by a wide margin. Story continues Schwab's researchers concluded that attempting to time the market is not an advisable approach for most investors. Absent perfect knowledge of future market movements, which no investor has, it’s virtually impossible to consistently buy at the market's lowest point. The potential gains of perfect timing over simply investing immediately are relatively small, they said, while risks of mistiming investments are substantially high. The Limitations of Schwab’s Study A woman reviews her portfolio and investment strategy while sitting at a cafe. While insightful, Schwab’s study does have some limitations. For one thing, it focused exclusively on U.S. large-cap stocks rather than including other asset classes. Most portfolios will diversify beyond the S&P 500 and post returns that will vary from these results. Additionally, the analysis relies on back-testing and hypothetical scenarios rather than real investor experiences. Market conditions and individual investment amounts could produce different relative results than Schwab’s assumed models. Conventional investing advice warns against basing decisions solely on hypothetical simulations. However, the report still offers valuable insights for those concerned with maximizing their portfolio’s allocation. So, What Is Market Timing? Market timing refers to buying and selling investments based on predictions of how prices will fluctuate in the present and future. The goal is to buy assets just before prices rise and sell them just before prices fall. In theory, perfect market timing would allow an investor to consistently buy low and sell high. However, predicting short-term market movements is extremely difficult in reality. It also essentially requires the investor to be right twice: they must perfectly time both their entrance to and exit from the market. A slight miscalculation in either transaction can have a significant impact on their eventual returns. In fact, previous research from Retirement Researcher found that missing out on the best single month in the market between 1926 and 2016 would have left a market-timing investor with 30% less money than an investor who simply used a buy-and-hold strategy during that time. Other Popular Investment Strategies A married couple looks over their investment strategy together. The investment strategies Schwab studied represent popular approaches, but many others may prove suitable for specific situations. For instance, here are some popular strategies investors use: Growth investing: This focuses on stocks with appreciation potential. It aims to build wealth over time through rising share prices. Value investing: This seeks out underpriced stocks trading below their inherent worth, meaning it looks for marketplace mispricing. Income investing: This aims to generate income in the now. It favors bonds and stocks with dividends over pure growth potential. Index investing: This looks to construct portfolios that match market benchmarks. It aims to capture broad market returns at a low cost, with securities like ETFs. Bottom Line The idea of market timing is alluring, but not likely to represent a reliable strategy in the real world. For long-term investors saving for retirement or other financial goals, adopting a patient buy-and-hold approach likely represents the optimal marriage between growth and risk management. Additionally, greater diversification among asset classes can produce more balanced returns with less overall risk. Investing Tips Unsure about which investment strategy is right for you? Consider consulting a financial advisor to discuss your options. Finding a financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you're ready to find an advisor who can help you achieve your financial goals, get started now. Estimating how much your money could grow by investing it can help you get a better sense of how to allocate your assets. Use SmartAsset's investment calculator to find out what your investment could be worth in the future. Get retirement planning and investing tips Tuesday through Friday with the SmartMoney Minute newsletter. It’s 100% free and you can unsubscribe at any time. 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Paid sick leave sticks after many pandemic protections vanish 2024-05-09 22:42:00+00:00 - Bill Thompson's wife had never seen him smile with confidence. For the first 20 years of their relationship, an infection in his mouth robbed him of teeth, one by one. "I didn't have any teeth to smile with," the 53-year-old of Independence, Missouri, said. Thompson said he dealt with throbbing toothaches and painful swelling in his face from abscesses for years working as a cook at Burger King. He desperately needed to see a dentist but said he couldn't afford to take time off without pay. Missouri is one of many states that do not require employers to provide paid sick leave. So Thompson would swallow Tylenol and push through the pain as he worked over the hot grill. "Either we go to work, have a paycheck," Thompson said. "Or we take care of ourselves. We can't take care of ourselves because, well, this vicious circle that we're stuck in." In a nation that was sharply divided about government health mandates during the COVID-19 pandemic, the public has been warming to the idea of government rules providing for paid sick leave. Before the pandemic, 10 states and the District of Columbia had laws requiring employers to provide paid sick leave. Since then, Colorado, New York, New Mexico, Illinois, and Minnesota have passed laws offering some kind of paid time off for illness. Oregon and California expanded previous paid leave laws. In Missouri, Alaska, and Nebraska, advocates are pushing to put the issue on the ballot this fall. The U.S. is one of nine countries that do not guarantee paid sick leave, according to data compiled by the World Policy Analysis Center. Bill Thompson marches in support of paid sick leave and a $15 minimum wage in Kansas City, Missouri, in 2023. (Missouri Workers Center) Missouri Workers Center In response to the pandemic, Congress passed the Emergency Paid Sick Leave and Emergency Family and Medical Leave Expansion acts. These temporary measures allowed employees to take up to two weeks of paid sick leave for COVID-related illness and caregiving. But the provisions expired in 2021. "When the pandemic hit, we finally saw some real political will to solve the problem of not having federal paid sick leave," said economist Hilary Wething. Wething co-authored a recent Economic Policy Institute report on the state of sick leave in the United States. It found that more than half, 61%, of the lowest-paid workers can't get time off for an illness. "I was really surprised by how quickly losing pay — because you're sick — can translate into immediate and devastating cuts to a family's household budget," she said. Wething noted that the lost wages of even a day or two can be equivalent to a month's worth of gasoline a worker would need to get to their job, or the choice between paying an electric bill or buying food. Wething said showing up to work sick poses a risk to co-workers and customers alike. Low-paying jobs that often lack paid sick leave — like cashiers, nail technicians, home health aides, and fast-food workers — involve lots of face-to-face interactions. "So paid sick leave is about both protecting the public health of a community and providing the workers the economic security that they desperately need when they need to take time away from work," she said. The National Federation of Independent Business has opposed mandatory sick leave rules at the state level, arguing that workplaces should have the flexibility to work something out with their employees when they get sick. The group said the cost of paying workers for time off, extra paperwork, and lost productivity burdens small employers. According to a report by the National Bureau of Economic Research, once these mandates go into effect, employees take, on average, two more sick days a year than before a law took effect. Illinois' paid time off rules went into effect this year. Lauren Pattan is co-owner of the Old Bakery Beer Co. there. Before this year, the craft brewery did not offer paid time off for its hourly employees. Pattan said she supports Illinois' new law but she has to figure out how to pay for it. "We really try to be respectful of our employees and be a good place to work, and at the same time we get worried about not being able to afford things," she said. That could mean customers have to pay more to cover the cost, Pattan said. As for Bill Thompson, he wrote an op-ed for the Kansas City Star newspaper about his dental struggles. "Despite working nearly 40 hours a week, many of my co-workers are homeless," he wrote. "Without health care, none of us can afford a doctor or a dentist." That op-ed generated attention locally and, in 2018, a dentist in his community donated his time and labor to remove Thompson's remaining teeth and replace them with dentures. This allowed his mouth to recover from the infections he'd been dealing with for years. Today, Thompson has a new smile and a job — with paid sick leave — working in food service at a hotel. In his free time, he's been collecting signatures to put an initiative on the November ballot that would guarantee at least five days of earned paid sick leave a year for Missouri workers. Organizers behind the petition said they have enough signatures to take it before the voters.
Faulty insulin pump tech led to hundreds of injuries, prompting app ecall 2024-05-09 22:36:00+00:00 - Insulin prices capped for millions, but not all qualify Insulin prices capped for millions, but not all qualify 02:20 More than 200 people with diabetes were injured after technology defect caused their insulin pump to unexpectedly shut down, according to the Food and Drug Administration. The software glitch has prompted the recall of more than 85,000 versions of a mobile app, called t:connect and developed by Tandem Diabetes Care, the FDA noted on Wednesday. The Apple iOS-based software recall involves Version 2.7 of the mobile app, which works with the t:slim X2 insulin pump with Control-IQ technology. The issue can cause the app to continuously crash and restart, draining the pump's battery. A shutdown of the pump suspends the delivery of insulin, which can result in hyperglycemia or even ketoacidosis, a potentially life-threatening condition that can require hospitalization or intervention by a medical professional. Tandem urged patients and physicians who use the device to update the app to version 2.7.1 or later as soon as possible. As of April 15, there have been 224 reported injuries and no reports of death, according to the notice posted by the FDA. Roughly 38 million people in the U.S. have diabetes, according to the Centers for Disease Control and Prevention. Diabetes can cause health complications including blindness, kidney failure, heart disease, stroke, and loss of toes, feet or legs.
Planet Fitness raises membership fee for first time since 1998 2024-05-09 22:35:00+00:00 - What do fitness trackers really do for your health? National gym chain Planet Fitness is hiking the cost of its basic membership for the first time in 26 years. A no-frills membership for new customers will cost $15 per month, up from the $10 it had been priced at since 1998. The price hike will go into effect this summer. Current members, who joined at $10 per month, will continue to pay that amount until the membership expires, the fitness company said in its first quarter earnings call Thursday. The company is only raising the price of its lowest tier or "classic" membership that lets members use a single gym location. "It will take some time for the benefit of the price change to expand our store level margins as the price increase will only be on new classic card memberships," PlanetFitness CFO Tom Fitzgerald, who is retiring in August, said on the earnings call. The membership price hike comes amid "several headwinds" affecting the company's results. Executives acknowledged consumers' focus on saving money, COVID-related concerns, as well as a failed advertising campaign. For an unchanged fee of $25 a month, Planet Fitness "Black Club" members can work out at multiple facilities; more than 60% of the company's members join at the "Black Card" tier. The 50% price hike comes after price-testing costs in multiple markets. "We use a disciplined data-driven approach to determine the best balance between the higher dues while minimizing loss of membership. Based on our learnings, we decided to change the price of the classic card to $15," PlanetFitness CEO Craig Benson said on the earnings call. The company will also conduct similar price tests for the Black Card membership. At the other end of the spectrum, luxury fitness chain Equinox this week launched an ultra premium program for fitness-obsessed members costing no less than $40,000 a year.
Tesla accused by NLRB of creating policies to chill workers' unionizing efforts in Buffalo 2024-05-09 22:29:00+00:00 - Elon Musk, co-founder of Tesla and SpaceX and owner of X Holdings Corp., speaks at the Milken Institute's Global Conference at the Beverly Hilton Hotel,on May 6, 2024 in Beverly Hills, California. Tesla is being accused of taking steps to keep employees in Buffalo, New York, from unionizing, according to a complaint from the National Labor Relations Board. On Tuesday, the NLRB's regional director for Buffalo, Linda Leslie, filed the complaint. In it, she said Tesla "promulgated and maintained," an acceptable use policy for workplace technology in 2023 that was meant to "discourage its employees from forming, joining, or assisting the Union or engaging in other concerted activities," after allegations were raised by members of Workers United. CNBC obtained a copy of the complaint through a Freedom of Information Act request. The policy restricted Tesla workers from "recording, unauthorized solicitating [sic] or promoting," and "creating channels and distribution lists," among other things, the complaint said. The NLRB also claims the policy had the effect of "interfering with, restraining, and coercing employees in the exercise of rights guaranteed" under the National Labor Relations Act, which generally protects workers' rights to discuss organizing, join a union and collectively negotiate for better pay and working conditions. The Tesla Buffalo plant was supposed to manufacture solar panels, but has been used more recently to assemble electric vehicle charging equipment, and to house a team of AI software data labelers. Last month, the Buffalo plant was home to a number of job cuts put in place as part of a broader restructuring at the electric vehicle company. According to a WARN notice filed in the state, Tesla is laying off 285 employees in the state of New York, mostly at the Buffalo factory. The company is eliminating thousands of jobs worldwide after declining EV sales in the first quarter. Tesla and CEO Elon Musk have clashed with union proponents for years and were found to have engaged in union busting. In 2021, the NLRB decided that Tesla violated labor laws when it fired a union activist, and when Musk wrote on Twitter in 2018: "Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted. But why pay union dues & give up stock options for nothing?" An administrative court ordered the CEO to remove the post. Tesla challenged the order but its petition for review was denied. The post in question remains on Musk's X account, where he has 182.7 million listed followers. Tesla has also faced workers' rights challenges in Europe. Last year, Swedish service technicians began a strike that continues today, with the labor group allowing for some authorized work to take place at times. The employees in Sweden, where a majority of the workplace is involved in unions, are seeking a collective bargaining agreement with Tesla. Tesla didn't immediately respond to a request for comment. Read the complaint here:
Chinese EV maker Zeekr prices IPO at $21, at the top end of range, reports say 2024-05-09 22:21:00+00:00 - A Zeekr 001 electric vehicle (EV) by Geely is seen displayed at the Zeekr booth during a media day for the Auto Shanghai show in Shanghai, China April 19, 2021. Chinese electric vehicle maker Zeekr priced its initial public offering at $21 a share Thursday, at the top end of its range, according to news reports. The company will sell 21 million American depository shares to raise $441 million when it begins trading on the New York Stock Exchange on Friday under the ticker ZK, Reuters and Bloomberg News reported, citing sources familiar. The offering sits at the top of Zeekr's expected range of $18 to $21 a share, revealed in an F-1 filing with the Securities and Exchange Commission earlier this month. Zeekr, which is backed by Chinese-based automotive group Geely, offers several luxury vehicle models, including an upscale sedan it began delivering in January. Geely will have more than 50% of the company's voting power after the IPO is complete. "Through developing and offering next-generation premium BEVs and technology-driven solutions, we aspire to lead the electrification, intelligentization and innovation of the automobile industry," the company said in its SEC filing. Zeekr could pose big competition for Tesla , which it reportedly outpaced in car sales in the province of Zhejiang, China, during the first three weeks of April. The province is where its parent company is based. "Our sales gap with Tesla keeps on narrowing," Zeekr CEO Andy An told CNBC in an interview last month translated from Mandarin. He said the company plans to expand in Europe and Latin America this year, and it already sells vehicles in Sweden and the Netherlands. According to the regulatory filing, Zeekr posted $7.28 billion in revenue for 2023 and a loss of $1.16 billion. The company also said it delivered 16,089 units in April. Zeekr has said it plans to use the proceeds from the offering to develop more advanced battery electric vehicle technologies. Funds will also be used for selling and marketing purposes, such as growing its charging, along with general corporate needs. Underwriters of the deal include Goldman Sachs, Morgan Stanley, Merrill Lynch and China International Capital.
TILT Holdings' Bold Financing Move: How This Cannabis Company's Escalating Interest Rates Impact Its PA Operations - TILT Holdings (OTC:TLLTF) 2024-05-09 22:15:00+00:00 - Loading... Loading... TILT Holdings Inc. TLLTF has secured a financing arrangement with an experienced retail operator for its subsidiary, Standard Farms, to expand in Pennsylvania. Since 2019, Standard Farms has established a strong presence in Pennsylvania, providing products to most state dispensaries. "We applaud the Commonwealth for providing a positive path forward for a small independent grower like TILT’s Standard Farms to compete in this vibrant marketplace," said Tilt CEO Tim Conder. This strategic funding will enhance TILT's market position significantly, leveraging its existing infrastructure and market knowledge to optimize the new operations. Financial Terms And Strategy Under the terms of the secured promissory note, Standard Farms is eligible to borrow up to $10.5 million. These funds are earmarked for constructing dispensaries authorized by a Department of Health permit. The funding also supports the initial setup and operations at these locations. The move comes under Senate Bill 773, allowing Standard Farms to build and operate three new dispensaries as part of Pennsylvania's Medical Marijuana Program. Interest rates on the note start at 20% and escalate to 40% six months after the first commercial sale from any of the new locations, reflecting the risk and potential growth anticipated from this venture. Security And Loan Agreements The loan is secured by first-priority security interest in Standard Farms' retail assets and second-priority in the equity interests of Baker Technologies, Inc., a subsidiary of TILT. A security agreement outlines additional terms including covenants and event of default clauses, which, if triggered, could escalate the payable balance up to four times the outstanding obligations. Loading... Loading... Why Pennsylvania? What is PA's potential? In the first quarter of 2024, the cannabis market in exhibited resilience and growth despite a general downturn in the sector across several other states. Pennsylvania reported a 3% increase in cannabis sales, standing out as one of the few states to show positive momentum amid broader market struggles. This growth indicates a robust market environment capable of sustaining and expanding its cannabis operations even when other regions are facing declines. The state's market dynamics reflect a stable demand and effective market penetration, which might attract further investments and expansion by multi-state operators (MSOs) looking for promising opportunities in a generally challenging economic landscape for cannabis. Scanning through cannabis spreadsheets can take some time. To learn more about investing, don't miss the opportunity to join us at the 19th Benzinga Cannabis Capital Conference in Chicago this October 8-9. Engage with top executives, investors, policymakers, and advocates to explore the industry's future. Secure your tickets now before prices increase by following this link . TILT's Financial Landscape Data from Benzinga Pro shows TILT’s financial profile, characterized by operational and market elements. The company has 343.626 million shares outstanding and a float of 302.548 million shares, highlighting its presence in the market. In terms of assets and liabilities, TILT holds total assets of $231.188 million, which underpin its operational infrastructure. The total liabilities are at $168.795 million with long-term debt accounting for $35.108 million of this figure. This indicates a leveraged but manageable financial stance. Regarding market valuation, TILT's market cap is at $11.649 million compared to its total assets. The enterprise value, higher at $117.967 million, reflects factors such as debt and future earning potential considered by investors. On the cash flow and liquidity front, TILT generated $5.367 million from its operational activities over the trailing twelve months, important for sustaining day-to-day operations. However, the current ratio of 0.740 suggests liquidity challenges, which could pose difficulties in meeting short-term obligations without financial adjustments. Photo: AI-Generated Image.
GM is retiring the Chevrolet Malibu, once a top-seller in the U.S. 2024-05-09 22:14:00+00:00 - Breaking down the $100 million investment for auto parts manufacturers to prepare for EVs Breaking down the $100 million investment for auto parts manufacturers to prepare for EVs 05:07 General Motors plans to stop making its Chevrolet Malibu at the end of the year as it makes room for production on more electric vehicles. First introduced in 1964, the Malibu was once the top-selling car in its segment in the U.S., an unwavering presence of family garages nationwide. Professional stock car racers used the Malibu body between 1973 and 1977 for NASCAR competitions, helping drivers win 25 different titles, according to Motor Trend magazine. At its height, the Malibu won Motor Trend Car of the Year 1997 because of its smooth ride, fuel economy and luxury interior. The front of a 1964 Chevrolet Chevelle Malibu Super Sport Jeff Gritchen/Digital First Media/Orange County Register via Getty Images But sales of the Malibu, a midsize sedan, declined in the early 2000s as Americans' preferences turned toward SUVs and pickup trucks. Hoping to jump start sales, GM did a redesign of the Malibu in 2015-16 complete with a lighter 1.5-Liter four-cylinder engine, honeycomb grille and jeweled LED headlights. Sales rose to nearly 230,000 after a redesign for the 2016 model year, but much of those were at low profits to rental car companies. Last year, midsize cars made up only 8% of U.S. new vehicle sales, down from 22% in 2007, according to Motorintelligence.com. Americans bought 1.3 million sedans last year in a segment that's been dominated lately by the Toyota Camry and Honda Accord. 2016 Chevrolet Malibu 2LZ Premier sedan. Sales rose to nearly 230,000 after a redesign for the 2016 model year, but much of those were at low profits to rental car companies. Jim Mahoney/MediaNews Group/Boston Herald via Getty Images GM sold just over 130,000 Malibus in 2023, 8.5% fewer than in 2022. All told, GM said it sold more than 10 million Malibus in the car's lifetime, spanning nine generations since its debut. GM's factory in Kansas City, Kansas, which now makes the Chevy Malibu will stop making the car in November. The plant will get a $390 million retooling to make a new version of the Chevrolet Bolt small electric car. The plant will begin producing the Bolt and the Cadillac XT4 on the same assembly line in late 2025, giving the plant the flexibility to respond to customer demands, the company said. Even though the Malibu is leaving, the vehicle will remain on dealership lots probably until early 2025, Sean Tucker, senior editor at Kelley Blue Book and Autotrader, said in a blog post Thursday, adding that "they may be great buying opportunities." The Malibu "still delivers reliable transportation in a handsome package," Kelley Blue Book test driver Russ Heaps said in the post. "Passenger comfort ranks high on its reasons-to-buy list, as does its trunk space." To be sure, the Malibu wasn't without its problems. GM recalled more than 140,000 Malibus in 2014 because a software problem in the brake control computer could disable the power brakes. The Michigan automaker recalled nearly 92,000 Malibus in 2015 because the car's sunroof could close inadvertently.
Maxine Waters, Elizabeth Warren Back FDIC Chairman With Agency Under Fire For Toxic Workplace 2024-05-09 22:11:00+00:00 - Loading... Loading... The head of the Federal Deposit Insurance Corporation (FDIC) is set to address Congress next week amid allegations of sexism, abuse, and racism within the workplace. What Happened: Martin Gruenberg, who has been at the helm of the FDIC since January 2023, first joined the FDIC board in 2005 and also served as its chairman from November 2012 to mid-2018. A third-party investigation has accused the FDIC of fostering a workplace that included sexual harassment and misconduct. Gruenberg will face hearings from the House of Representatives Financial Services Committee on Wednesday, May 15 and the Senate Banking Committee on Thursday, May 16. The FDIC chair faces bipartisan pressure to resign from the top position, but has also found support from some key figures in Congress. "The Cleary report places the focus for ‘tone at the top' solely on the Democratic chair under whose leadership the agency received the most favorable ratings from its employees, while it completely ignores the activities of the two previous Republican chairs," Rep. Maxine Waters (D-Calif.) said Thursday, as shared by The Hill. Waters said the report was "troubling" and that changes are needed in FDIC policies and programs. The congresswoman serves on the House Financial Services Committee. Press Secretary Karine Jean-Pierre was asked about the report earlier in the week. Jean-Pierre didn't answer a question on if Biden still had confidence in Gruenberg leading the FDIC but told reporters that the FDIC chairman had "apologized and has committed to the recommendations" in the Cleary report, as shared by The Wall Street Journal. Senator Elizabeth Warren (D-Mass.) showed support for Gruenberg earlier in the week, saying that the FDIC chairman apologized already. Warren said she backed "his work to implement the action plan to improve the FDIC's culture." Related Link: 5 Things You Might Not Know About Karine Jean-Pierre, Joe Biden’s Press Secretary Why It's Important: Gruenberg has been a member of the FDIC for over 20 years, and been the chairman or acting chairman on multiple occasions. The report points to problems at the FDIC for years, which may have been a period of time when he was not the chairman. Experts say Gruenberg might have to walk a fine line of admitting to problems and apologizing, while also pointing to how the FDIC will move past the issues when addressing Congress. Loading... Loading... Released on Tuesday, the Cleary report said the FDIC needs "cultural and structural changes." The investigation was prompted by stories published by The Wall Street Journal pointing to misconduct at the agency. According to Politico, the Cleary report also points to Gruenberg "losing his temper and interacting with staff in a demeaning and inappropriate manner." The report questions if Gruenberg is the right person to lead the agency through policy changes. The report also found that responses to allegations of misconduct were "insufficient and ineffective." "While we do not find Chairman Gruenberg's conduct to be a root cause of the sexual harassment and discrimination in the agency or the long-standing workplace culture issues identified in our review, we do recognize that, as a number of FIDC employees put it in talking about Chairman Gruenberg, culture ‘starts at the top,'" the report said. Gruenberg has apologized and said he plans to stay in his current role. Read Next: Maxine Waters Says ‘Stablecoin Bill In The Short Run’ Coming Photo: Shutterstock
How Google founders Larry Page and Sergey Brin built their combined $257 billion net worth, and how they spend it 2024-05-09 21:43:02+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Larry Page and Sergey Brin may have only taken salaries of $1 during their time at Google, but they're still two of the richest people in the world. Both Page and Brin are among the largest shareholders of Google's parent company, Alphabet, despite stepping down from their posts in December 2019. Their combined fortune is valued at $257 billion, according to the Forbes Billionaires List. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Here's a look at how Page and Brin made and spend their fortunes. Brin and Page met in 1995, when Brin gave Page a tour around Stanford University Brin was a second-year graduate student in Stanford's computer science department and Page was considering attending. They reportedly both found each other "obnoxious" at first, but they became classmates. Advertisement Despite their initial spats, Brin and Page started working together on an interesting idea Page had about cataloging every link on the internet. BackRub, as it was called at its inception in 1996, took off. After dropping out of Stanford, the two founded Google in 1998 Brin and Page resigned from their management roles at Alphabet in 2019. JOKER/Martin Magunia/ullstein bild via Getty Images Google was first launched in a garage in Menlo Park, California. Page had two stints as Google's CEO while Brin was president. In 2019, the billionaire duo announced that they would be stepping back from their roles at Alphabet. "We've never been ones to hold on to management roles when we think there's a better way to run the company," their letter read. Advertisement Google CEO Sundar Pichai then took on the additional title of CEO of Alphabet. In 2005, Larry Page bought a $7.2 million home in Old Palo Alto The home, which is listed on the National Register of Historic Places, was built from 1931 to 1941 for Bay Area artist Pedro de Lemos. At 9,000 square feet, the two-story home was built in the Spanish Colonial Revival style. It's constructed of stucco and tile around a courtyard. Parts of the home were salvaged from a chapel that was partially destroyed during the 1906 San Francisco earthquake. In 2009, after Page bought the historic home, he started buying adjacent properties to construct an environmentally friendly estate. The 6,000-square-foot home has a roof garden with solar panels and four bedrooms. Advertisement Brin has even swankier digs in New York City's tony West Village Brin bought a West Village penthouse for $8.5 million in 2008. Celebrities like Sarah Jessica Parker and Tiger Woods have also scooped up property in that neighborhood. The two-story, three-bedroom, 3,457-square-foot penthouse also has a 1,200-square-foot wraparound terrace with views of lower Manhattan. The kitchen is outfitted with custom Moroccan tiles and top-of-the-line appliances. Brin has also purchased an estate in an undisclosed location in Los Altos Hills, California. The Google cofounders are both regulars at Burning Man Page and Brin are known for attending Burning Man. To disguise their identities, they've worn full spandex body suits. Advertisement They've also been known to spend time vacationing in Fiji. Burning Man has its own pop-up airport for all the billionaires preferring to charter their way to the festival built around the ideas of "decommodification" and "leave no trace." Julie Jammot/Getty Images Page and Brin also regularly traveled to Sicily to host the super-exclusive Google Camp. Related stories Google Camp takes place at the Verdura Resort, which has a 200-foot infinity pool, a mile of private coastline on the Mediterranean, and two 18-hole golf courses. Brin and Page have each bought superyachts While they were in Fiji in 2012, Brin and Page rode in Brin's superyacht, the Dragonfly, a vessel measuring 240 feet Brin reportedly bought for $80 million in 2011. Previously, it was available to charter for $773,000 per week. Advertisement Constructed in 2009, the Dragonfly was the world's fastest superyacht. It has an open-air cinema, a Jacuzzi, and a dance floor. It can hold 18 guests and 16 crew members. Brin has several luxury yachts and water-sports vehicles that those in his inner circle call the "Fly Fleet." Besides the Dragonfly, the fleet also includes a 130-foot yacht called the Butterfly, as well as a smaller pleasure craft called the Firefly. Business Insider Meanwhile, Page's superyacht, called "Senses," measures 60 meters and accommodates up to 12, has six decks, open and shaded sun decks, a gym, and Jacuzzi — as well as five Waverunners. He reportedly paid $45 million for it in 2011. Advertisement Brin and Page also travel in style by air They bought a Boeing 767-200 in 2005 — an unusual choice as executives usually prefer Gulfstream jets. Fabrizio Gandolfo/SOPA Images/LightRocket via Getty Images The former passenger jet carries 50 passengers. There are several seating areas, two staterooms with connecting bathrooms and showers, and a dining area. These guys don't just have a private plane — they also have an $82 million private airport. Google began building its own private airport near the San Jose airport in 2014. Page doesn't just dabble in typical aircraft. While we don't know how often Page himself is taking the products for a spin, he has funded three flying car companies — a fitting hobby for the man who once oversaw Waymo, Google's self-driving car service. Advertisement Page and Brin both have been taken with Teslas The duo led an investment round of $40 million in Elon Musk's EV company back in 2006. Brin was the fourth person to receive a Tesla Model X Crossover SUV in 2015 when it was first released — he snagged a white one. Tesla CEO Elon Musk speaks during an event to launch the new Tesla Model X Crossover SUV on September 29, 2015 in Fremont, California. After several production delays, Elon Musk officially launched the much anticipated Tesla Model X Crossover SUV. Justin Sullivan/Getty Images Page took his interest in Tesla even further in 2014 when he said he would donate his billions to Elon Musk instead of a charity, his family, or his own business. Page and Brin have both frequently given to philanthropic causes From 2000 to 2017, Brin donated donated $37.5 billion and Page $38.5 billion. In 2018, however, both Brin and Page gave 0% of their fortunes to charity. Advertisement Brin has reportedly donated more than $1.1 billion to Parkinson's disease research, making him the largest individual donor to the cause. (Brin has previously said his mother has Parkinson's, and he has a rare genetic mutation that puts him at a higher risk for developing it than the general population.) In both 2020 and 2021, The Sergey Brin Family Foundation gave roughly $250 million to groups with causes like tackling climate change and homelessness, and even a nonprofit supporting colonization of the moon. Page's Carl Victor Page Memorial Foundation disbursed nearly $200 million to charities in 2021, of which 99% went to the National Philanthropic Trust, a donor-advised fund. DAFs, as they're known, let donors make tax-deductible contributions that are given to charities over time, though money can stay in DAFs indefinitely, and when it is disbursed, you can't publicly track where it goes. Brin also spends his money on a variety of thrill-seeking hobbies Brin has been reportedly building an entire flying airship at a NASA research center near Mountain View, California, not far from Google's headquarters. Advertisement The project has been estimated to cost between $100 and $150 million — and is funded entirely by Brin. Brin's airship received FAA clearance last year. Sources say Brin pictures the airship delivering goods and food on humanitarian missions, as well as being an "air yacht" for the billionaire's friends and family. Sergey Brin's airship company, LTA Research, received clearance last year for its massive Pathfinder 1 to take the skies at heights of up to 1,500 feet. LTA Research via LinkedIn Brin is a lover of roller hockey, ultimate Frisbee, gymnastics, and high-flying trapeze. He has been spotted at advanced trapeze classes at the Circus Warehouse in New York City, which costs $1,760 per month. Page has been known to kite board — sometimes with Richard Branson. Advertisement Brin reportedly paid the salaries of 47 people who work for him and his family, including ex-bankers who manage his philanthropy and finances, a fitness coordinator, a yacht captain, an archivist, and a photographer. For those two centibillionaires, their combined net worth is now around a quarter of a trillion — yes, with a "t" — dollars. That's a far cry from Google's humble beginnings in a garage in Menlo Park. Rachel Premack and Taylor Nicole Rogers contributed to a previous version of this story.
Withholding US weapons from Israel could force changes in how it fights but may not stop its devastating assault 2024-05-09 21:39:57+00:00 - The US paused a shipment of bombs to Israel last week amid rising concerns over a Rafah assault. On Wednesday, President Joe Biden warned that Washington may block additional weaponry. It's a politically significant move that could have military implications as well. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time. Advertisement After seven months of war in the Gaza Strip, US military support for Israel has arrived at a pivotal moment in recent days: it no longer appears to be unconditional. Last week, the US paused a shipment of bombs to Israel — marking the first time since the war began last fall that Washington has done so — amid rising concerns that the country was gearing up for a major military operation in the southern Gaza city of Rafah. Then, on Wednesday, President Joe Biden warned he would withhold additional weaponry, including artillery, if Israel pressed forward with a widespread ground assault on the city, where more than 1 million Palestinian civilians have sought refuge. The Biden administration's decision is a politically significant move that appears designed to apply pressure on Israeli Prime Minister Benjamin Netanyahu's government to do more to protect civilians in Gaza. Experts say that there could also be military implications as Israel continues to wage war. Advertisement Biden is controlling 'one variable' The weapons shipment that the US put on hold last week was supposed to include 1,800 2,000-pound bombs and 1,700 500-pound bombs, according to multiple US officials. A final determination on what to do with this shipment has yet to be made. Israeli soldiers work on armored military vehicles at a staging ground near the Israeli-Gaza border, in southern Israel on May 8, 2024. AP Photo/Tsafrir Abayov Israel has relied heavily on its inventory of the larger, 2,000-pound bombs throughout the war to go after Hamas' vast underground tunnel network. These air-dropped munitions can be outfitted with precision-guidance kits, but even then, they are still capable of causing lots of collateral damage. The State Department is also mulling whether to deliver more of these kits, known as Joint Direct Attack Munitions. For now, these holds are primarily symbolic, Daniel Byman, a senior fellow with the Transnational Threats Project at the Center for Strategic and International Studies think tank, told Business Insider. But that could change over time. The depth of Israel's stockpile is unclear, but it is believed to have a sufficient supply of munitions to continue fighting in Gaza without this particular shipment of US weaponry, said Byman, a former Middle East analyst for the US intelligence community. But "the campaign may take a while, and as we know, munitions can be used up very, very rapidly in these circumstances," he added. Advertisement Hamas isn't Israel's only enemy though, and it wants to have a sizable stockpile of munitions to be ready for the possibility of a full-scale conflict with Lebanon's Hezbollah — another Iranian proxy group like Hamas. That would be a more difficult fight for the Israeli military, Byman said. Whether the US would actually withhold weaponry in that case is unknown. Related stories During a Wednesday interview with CNN's Erin Burnett, Biden acknowledged that civilians in Gaza have been killed by US-provided 2,000-pound bombs. He then said that he would withhold additional weaponry beyond the one shipment last week if the Israeli military proceeds with a major ground invasion in Rafah. A view shows Israeli F-16 fighter jets on a runway in an airbase in southern Israel on March 4, 2024. REUTERS/Ronen Zvulun "If they go into Rafah, I'm not supplying the weapons that have been used historically to deal with Rafah, to deal with the cities, to deal with that problem," Biden said. "We're not going to supply the weapons and the artillery shells have been used." Earlier this week, Israel ordered civilians to evacuate eastern Rafah before announcing a "precise counter-terrorism operation" in the area, during which Israeli military seized control of the Palestinian side of a key crossing with Egypt that it said was being used for "terrorist purposes." Advertisement The IDF said as part of its new activity, ground troops and fighter jets were striking Hamas targets in the Rafah area. The White House later described the operation as "limited," and Biden on Wednesday said Israel's actions so far haven't crossed his red line. Raphael Cohen, the director of the Strategy and Doctrine Program at the RAND Corporation think tank's Project AIR FORCE, explained to BI that by withholding 2,000-pound and 500-pound bombs, the US could force Israel to conduct more ground maneuver in Rafah, rather than an intense air campaign like what was seen earlier in the conflict. It's unclear if that would "necessarily save — minimize — Palestinian civilian casualties, but it does change the nature of combat," said Cohen, a former lieutenant colonel in the US Army Reserve. Putting a hold on artillery could also force Israel to carry out more high-precision raids, instead of clearing the entire city, he added. There is uncertainty there as well though. Smoke rises following Israeli strikes in Rafah on May 6, 2024. REUTERS/Hatem Khaled/File Photo "The problem is that the Biden administration is controlling one variable, which is munitions," Cohen said. Advertisement "It's all well and good to try to go after Hamas via commando raids," he added, but he cautioned that "the targets have to lend themselves to that kind of operation. It's not clear, to me at least, that that's necessarily the operational reality on the ground." The military utility of Biden's move ultimately has to be weighed against how important Israel views Rafah toward achieving its security objectives, Cohen said. "Countries are willing to go to great lengths if they feel their vital national interest is threatened, and fight even in suboptimal ways." Israel vows to 'stand alone' The decision to withhold weapons and Biden's latest warning that he would potentially put a pause on other support follows repeated efforts by the US to press Israel to present a credible plan that would limit civilian casualties ahead of any large-scale Rafah operation. It is not necessarily an unprecedented move, as past US administrations have also threatened to withhold military support from Israel. But this decision does represent a notable shift in Biden's approach to the war. Since Hamas' Oct. 7 terror attacks, the US has been unwavering in sending Israel a massive amount of weaponry, despite growing international concerns about the rising death toll in Gaza. Advertisement John Kirby, the spokesperson for the White House National Security Council, told reporters on Thursday that despite the single shipment of bombs being held up, the Biden administration is still sending weapons to Israel, which is getting the "vast, vast majority of everything that they need to defend themselves." Palestinians ride on a vehicle as they flee Rafah on May 9, 2024. REUTERS/Mohammed Salem For now, it remains to be seen how Israel proceeds with its military action in Rafah, but officials have been defiant in saying that they will continue to hunt down Hamas, regardless of how much international support the country retains. "If we need to stand alone, we will stand alone," Netanyahu asserted on Thursday, per a translation. "I have said that if necessary, we will fight with our fingernails."
Apple apologizes for iPad Pro ad showing hydraulic press destroying guitars, piano 2024-05-09 21:36:00+00:00 - Apple CEO Tim Cook waves to journalists after his meeting with Indonesian President Joko Widodo at the Presidential Palace in Jakarta, Indonesia, April 17, 2024. Apple took on Thursday the unusual step of apologizing for a short advertising video promoting the company's new iPad Pro tablet after the ad was roundly criticized on social media. "Our goal is to always celebrate the myriad of ways users express themselves and bring their ideas to life through iPad," Apple marketing VP Tor Myhren told Ad Age, an advertising trade publication. "We missed the mark with this video, and we're sorry." Apple CEO Tim Cook posted the spot on X, formerly Twitter, on Tuesday. Apple also posted it to YouTube. It showed a variety of creative tools, including a guitar, piano, and metronome being pressed by a hydraulic crusher — like recent viral TikTok videos — until all the objects were compressed into the company's new tablet. Apple has also decided not to run the ad on TV, Ad Age said. The spot provoked derision, including extensive media coverage, as viewers said it made Apple look out of touch, and many posted that the destruction of the creative tools offended them. Some Apple critics claimed that the negative reaction to the ad, instead of spreading Apple's marketing message for free, was a sign the company was running out of goodwill among customers. Apple is a major advertiser and has historically been closely linked with TBWA\Media Arts Lab, its longtime ad agency, although it also does some advertising development internally. It isn't the first Apple iPad ad in recent years to annoy some customers. In 2018, some people said they were annoyed by an iPad Pro spot in which a child asks, "What's a computer?"
A sunspot 7 times the size of Earth could spark aurora as far south as Michigan, New York, and Pennsylvania this Friday 2024-05-09 21:32:51+00:00 - A stunning aurora may be visible farther south than usual this Friday, lighting up the northern US. That's thanks to an overactive, giant spot seven times the size of Earth that's erupting on the sun. Northern border states from Washington to Michigan are most likely to see the aurora Friday night. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time. Advertisement The Northern Lights are forecast to reach farther south than usual this Friday, dazzling the northern US. Typically, the best time to see aurora is between 10:00 p.m. and 2:00 a.m. local time, because this is when it will be the most active, according to the National Oceanic Atmospheric Administration. We mainly owe this spectacle to a giant, hyperactive sunspot called AR3664 that's seven times the size of Earth and has been producing powerful eruptions, called coronal mass ejections, for the last several days. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
Colorado-based abortion fund sees rising demand. Many are from Texas, where procedure is restricted 2024-05-09 21:28:35+00:00 - DENVER (AP) — A Colorado abortion fund said Thursday it’s helped hundreds access abortion in the first months of 2024, many arriving from Texas where abortion is restricted, showing a steady increase in need each year since Roe v. Wade was overturned in 2022. The U.S. Supreme Court’s decision left a patchwork of state bans, restrictions and protections across the country. In response, a national makeshift network of individuals and organizations help those seeking abortions in states where it’s restricted, including the Colorado-based Cobalt Abortion Fund. Cobalt provides financial support for both practical expenses, such as travel and lodging, and abortion procedures, and they operate from the Democratic-led state that has staunchly protected access to abortion, including for nonresidents. Cobalt’s aid has already jumped since Roe was overturned, from $212,00 in 2021 to $1.25 million by 2023. In Cobalt’s latest numbers, the group spent $500,000 in the first three months of 2024 and predict spending around $2.4 million by the end of the year to help people access abortions. That would nearly double last year’s support. Over half of that 2024 spending went to some 350 people for practical support, not the procedure, and the vast majority of the clients were from Texas. “There is this idea that the Dobbs decision and subsequent bans, due to trigger bans, created an increase in volume, and now maybe that volume has decreased or kind of stabilized. That is not the case,” said Melisa Hidalgo-Cuellar, Cobalt’s director. “The volumes continue to increase every single month,” she said. Hidalgo-Cuellar says the steady rise is partly due to more access to information on social media and new restrictions. Florida’s restriction went into effect last week and bans most abortions after six weeks of pregnancy, before many women even know they are pregnant. Colorado has pulled in the opposite direction, becoming a haven for abortion in a region of largely conservative states. Last year, the state passed a law that shields those seeking abortions, and those providing them, from prosecution in other states where it’s restricted, such as Florida. Now, antiabortion activists are testing the boundaries of those bans in court. That includes a Texas man who is petitioning a court to authorize an obscure legal action to find out who allegedly helped his former partner obtain an out-of-state abortion. Those out-of-state abortions are in part why Cobalt’s funding for practical support — mainly travel expenses — exceeded it’s aid for the procedure itself. ___ Bedayn is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.
What Apple got so horribly wrong in its latest iPad Pro ad 2024-05-09 21:25:45+00:00 - Apple has usually been successful at drumming up excitement for its new product launches. But that was not the case this week for its latest iPad Pro, which was unveiled in a characteristically sleek advertisement on Wednesday — to extremely poor reception. The ad shows a range of musical instruments, artworks, books, music players and toys all stacked on a platform as a giant hydraulic press slowly crushes the objects to the accompaniment of a jaunty Sonny & Cher song. At the end, nothing is left but the iPad Pro. “The most powerful iPad ever is also the thinnest,” the voiceover says. Apple CEO Tim Cook shared the video on X, writing: “Just imagine all the things it’ll be used to create.” But the ad struck a nerve. Filmmaker Justine Bateman wrote on X that such technology “is just making some people insanely wealthy, at the expense of all of us.” Actor Hugh Grant called it “the destruction of the human experience.” One X user wrote that the ad “lacks respect for creative equipment and mocks creators.” In an environment where there are deep fears that AI and other tech advancements could replace human creativity, Apple managed to conceive the most apt metaphor for that process. It made a fundamental mistake here by quite literally showing its latest device rendering obsolete the various objects that people use to express thought and creativity. Instead, the ad seems to suggest, you can use a single digital product to replicate the creation of music, art and play for a mere $999. Sure, you could say that people are overreacting to the video. After all, an ad — no matter how poorly received or disastrous its metaphor — is simply an ad. But Apple should probably have thought twice before serving up an image in which creative, cultural objects are literally obliterated and replaced with one of its products.